Driving Growth & Innovation in the Bearing Industry

Founded in 1946, National Engineering Industries Ltd (NEI) is part of the CK Birla group and a leading manufacturer of the NBC brand of bearings. With a production capacity of 250 Mn bearings annually in over 3100 variants chiseled out from 5 manufacturing plants for applications predominantly in automotive, railways, aerospace and industrial segments, NEI serves its demanding customers in more than 30 countries across the globe. Apart from being technologically advanced, the company practices methods of sustainability by using alternate sources of energy and increasing the efficiency of the manufacturing process by leveraging the power of digitisation. The one and only bearing manufacturer in the world to win the prestigious Deming Grand Prize for outstanding performance improvements through the application of TQM principles, this global player is forging ahead incessantly, expanding its product range, technological capabilities, and market reach, discovers Bearing Review in an interaction with Rohit Saboo, President & CEO, NEI. Excerpts:

Q. NEI has a rich history of over 75 years. How has the company evolved since its inception in 1946, and what have been the key milestones in this journey?

National Engineering Industries Ltd. (NEI), established in 1946, has grown to become one of India’s leading bearing manufacturers. The company founded by B. M. Birla started operations with a single product line in Jaipur, Rajasthan. Over the years, NEI has transformed itself into a global player, continuously expanding its product range, technological capabilities, and market reach.

NEI’s journey is marked by several key milestones: In 1958, the company launched its first production of taper roller bearings, expanding its product range. By 1982, NEI established its first in-house R&D facility, setting the stage for innovation. In 1991, NEI entered international markets, establishing itself as a global player. By 2006, the company produced over 100 million bearings annually. NEI earned the Deming Application Prize in 2010, becoming the first Indian bearing manufacturer to receive it, and in 2015, it became the only bearing manufacturer globally to win the Deming Grand Prize. The acquisition of Kinex Bearings in 2020 bolstered NEI’s global footprint, and in 2022, the establishment of a Global Technology Centre in Germany highlighted NEI’s commitment to innovation and staying competitive in the global market.

Q. Being part of the CK Birla Group, how does NEI leverage the group’s diverse portfolio and resources to drive growth and innovation in the bearing industry?

As part of the CK Birla Group, NEI benefits immensely from the group’s diversified portfolio, which spans industries as diverse as automotive, technology, building materials, and healthcare. This association provides NEI with access to a wide range of resources, expertise, and synergies that drive growth and innovation in the bearing industry.

NEI’s strategic advantages are rooted in its cross-industry expertise, which allows the company to integrate best practices from various domains, boosting operational efficiency and product innovation. Collaboration with other group companies accelerates NEI’s R&D, leading to cutting-edge developments. The financial strength of being part of a large conglomerate enables NEI to invest in advanced technologies, expand manufacturing, and explore new markets, ensuring global competitiveness. Additionally, the CK Birla Group’s extensive global network facilitates NEI’s international expansion and partnerships, driving continued success on the global stage.

Q. NEI is the only bearing manufacturer in the world to have won the prestigious Deming Grand Prize. Could you share the significance of this achievement and how it reflects on your company’s commitment to quality?

NEI’s achievement of winning the prestigious Deming Grand Prize is a testament to the company’s unwavering commitment to quality, continuous improvement, and operational excellence. The Deming Grand Prize is the highest honor for Total Quality Management (TQM) and is awarded to organizations that have achieved outstanding performance improvements through the application of TQM principles.

Winning the Deming Grand Prize positioned NEI as a global leader in quality management, enhancing its reputation and credibility in the international market. This prestigious recognition underscores NEI’s unwavering commitment to maintaining the highest standards of quality across its products and processes, reflecting a culture of continuous improvement. It also reassures customers of NEI’s dedication to excellence, fostering long-term loyalty and stronger business relationships.

Q. With a manufacturing capacity of 250 million bearings annually across 3,100+ variants, how does NEI maintain consistency and precision in its production processes?

NEI’s ability to maintain consistency and precision in its production processes is a critical factor in its success. The company achieves this through a combination of advanced manufacturing technologies, stringent quality control measures, and a culture of continuous improvement.

NEI has made significant investments in automation and digitization, integrating Industry 4.0 technologies like IoT and AI to ensure real-time monitoring and precision in production. The company’s stringent quality control processes, backed by advanced testing equipment, guarantee that every bearing meets the highest standards. A skilled workforce, continuously trained in the latest techniques, further supports this commitment to quality. Additionally, NEI’s adoption of lean manufacturing principles enhances process efficiency, reducing waste and costs while consistently delivering high-quality products.

Q. Sustainability is a key focus area for NEI. Can you elaborate on the specific initiatives the company has undertaken to make its manufacturing processes more environmentally friendly?

Sustainability is a core focus area for NEI, and the company has undertaken several initiatives to make its manufacturing processes more environmentally friendly. These initiatives are aligned with NEI’s commitment to reducing its environmental footprint and promoting sustainable practices across its operations.

NEI has implemented energy-efficient technologies and practices across its manufacturing plants. These include the use of energy-efficient lighting, advanced HVAC systems, and energy management systems that monitor and optimize energy consumption in real-time.Use of solar and wind energy in its operations is also a step in energy conservation.

NEI is also committed to minimizing waste in its production processes. The company has adopted lean manufacturing principles to reduce material waste and has implemented recycling programs to ensure that waste materials are properly managed and reused wherever possible.

NEI has introduced water conservation measures in its manufacturing processes, including the use of water-efficient equipment and the implementation of rainwater harvesting systems. These efforts have significantly reduced the company’s water consumption.

NEI is committed to sourcing raw materials from sustainable and ethical suppliers. The company works closely with its suppliers to ensure that they adhere to environmental and social responsibility standards.

Q. In 2020, NEI acquired Kinex Bearings in Europe, and in 2022, opened a Global Technology Centre in Germany. How have these strategic moves impacted your global footprint and product offerings?

NEI’s acquisition of Kinex Bearings in Europe and the establishment of a Global Technology Centre in Germany are strategic moves that have significantly impacted the company’s global footprint and product offerings.

The acquisition of Kinex Bearings has strengthened NEI’s presence in the European market, enabling the company to offer a broader range of products to European customers. This strategic move has also provided NEI with access to advanced manufacturing technologies and expertise.

The Global Technology Centre in Germany serves as a hub for innovation and R&D. It enables NEI to collaborate with leading research institutions and industry experts to develop cutting-edge technologies and products that meet the evolving needs of the global market.

The acquisition and the technology centre have allowed NEI to diversify its product offerings, particularly in the high-precision and specialty bearings segments. This diversification has opened up new opportunities for NEI in sectors such as aerospace, railways, and industrial automation.

Q. NEI serves a wide array of sectors including automotive, railways, aerospace, and industrial segments. How does the company cater to the unique requirements of each of these sectors?

Each of these sectors has unique requirements, and NEI tailors its products and services to meet these specific needs.

Automotive: In the automotive sector, NEI focuses on providing high-performance bearings that meet the stringent quality and durability requirements of automotive manufacturers. The company’s bearings are used in various automotive applications, including engines, transmissions, and wheel assemblies. This also includes the Electric Vehicle segment.

Railways: NEI’s bearings are widely used in railway applications, where they must withstand heavy loads and harsh operating conditions. The company offers specialized bearings for locomotives, passenger coaches, and freight cars, ensuring reliability and safety in railway operations.

Aerospace: In the aerospace sector, NEI provides high-precision bearings that meet the exacting standards of the industry. The company is developing bearings for several applications where precision and reliability are paramount.

Industrial: NEI serves a diverse range of industrial applications, including mining, construction, and manufacturing. The company’s bearings are designed to operate in challenging environments and deliver superior performance, even under extreme conditions.

Q. Digitization plays a significant role in modern manufacturing. How is NEI harnessing digital technologies to enhance efficiency, quality, and innovation?

NEI is harnessing digital technologies to transform its manufacturing processes, ensuring greater efficiency, enhanced quality, and continuous innovation. The company has heavily invested in automation and digitization across its plants, integrating Industry 4.0 technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and advanced data analytics. These technologies enable real-time monitoring and control of production processes, allowing for precise adjustments that ensure consistency and quality in every bearing produced.

NEI’s adoption of smart manufacturing practices includes the use of predictive maintenance systems, which utilize AI and machine learning to predict equipment failures before they occur, minimizing downtime and reducing maintenance costs. The implementation of IoT devices across the production line provides real-time data, enabling swift decision-making and process optimization.

In addition to these technologies, NEI has embraced digitization in its supply chain management, utilizing advanced software solutions to improve inventory management, demand forecasting, and logistics. This integration ensures a more responsive and agile supply chain, capable of meeting the dynamic demands of the market.

Q. With a strong presence in both OEM and aftermarket segments, how does NEI manage its relationships with customers and ensure product reliability across these different markets?

NEI’s strong presence in both the OEM and aftermarket segments is driven by its strategic focus on tailored customer solutions, rigorous quality assurance, and robust after-sales support. For OEMs, NEI collaborates closely during product development, ensuring customized solutions that meet specific requirements. In the aftermarket, the company emphasizes reliability and ease of installation, with a comprehensive service network to minimize downtime.

NEI’s commitment to quality is upheld through advanced testing and inspection processes, ensuring consistency across all products. The company also gathers customer feedback to refine its offerings, maintaining a close feedback loop to anticipate future demands.

Strategic partnerships and an extensive distribution network enable NEI to effectively serve customers globally, while ongoing innovation ensures that its products continue to meet evolving market needs. This holistic approach fosters long-term customer relationships and reinforces NEI’s leadership in the bearing industry.

Q. Could you share more about NEI’s R&D capabilities, and how they contribute to the company’s position as a leader in the bearing industry?

NEI’s R&D capabilities are central to its leadership in the bearing industry, driving innovation, product development, and technological advancement. The company operates multiple R&D centers, including the Global Technology Centre in Germany, which focuses on cutting-edge research in materials science, tribology, and advanced manufacturing techniques.

NEI’s R&D team collaborates with global experts and leverages state-of-the-art tools such as computer-aided design (CAD), finite element analysis (FEA), and simulation technologies to develop high-performance bearings that meet the stringent demands of various industries, including automotive, railways, aerospace, and industrial applications.

By investing in R&D, NEI not only enhances the durability, efficiency, and precision of its products but also explores new materials and manufacturing processes that contribute to sustainability and cost-effectiveness. The company’s R&D efforts have led to the development of specialized products like low-friction bearings, high-temperature bearings, and corrosion-resistant bearings, which cater to specific market needs.

Q. How is NEI addressing the challenges and opportunities presented by the ongoing advancements in the automotive and aerospace industries, particularly in the context of electric vehicles and new materials?

In the automotive sector, NEI is focusing on developing bearings that meet the specific demands of EVs, which require higher efficiency, reduced friction, and the ability to operate under different thermal conditions compared to traditional vehicles. The company’s R&D teams are working on innovative materials and coatings to enhance bearing performance in EVs, ensuring durability, lower energy consumption, and increased range.

NEI is also exploring lightweight materials and advanced manufacturing techniques that are critical in the aerospace industry, where the demand for high-performance, weight-saving components is increasing. The company is leveraging its expertise in materials science and tribology to develop bearings that can withstand extreme conditions while contributing to overall weight reduction.

Q. What are NEI’s future plans and strategies for sustaining its leadership position in the bearing industry, both in India and globally?

NEI’s future strategy focuses on exploring new markets, particularly in the high-growth industrial segment, where the company anticipates significant expansion. NEI is committed to growing both organically and inorganically, remaining open to mergers and acquisitions not only in the bearing segment but also in adjacent industries that align with customer needs. By continuing to innovate, invest in sustainability, and leverage digital transformation, NEI aims to sustain its leadership position while expanding its global footprint and offering enhanced solutions to its customers.